Fedex dropped more than 4% on Tuesday after the company lowered its 2019 earnings guidance after reporting weakness in its international business, particularly in Europe.
The logistics company lowered its full year earnings guidance to a range of $15.50 to $16.60, down from $17.20 to $17.80 per share. Analysts expected $17.33 per share.
"Global trade has slowed in recent months and leading indicators point to ongoing deceleration in global trade near-term," said Alan B. Graf, Jr., executive vice president and chief financial officer of FedEx. "These trends, coupled with the change in service mix at FedEx Express, are negatively impacting the segment's financial results."
The company announced plans for a voluntary buyout program, limiting hiring, reducing international network capacity at FedEx Express and reducing discretionary spending to help save costs.
However, the company beat expectations on both the top and bottom lines. FedEx reported earnings of $4.03 a share while analysts expected $3.94. It also beat expectations in revenue, reporting $17.8 billion, versus analysts' prediction of $17.75 billion.
UPS shares also dropped more than 3 percent after hours.
This story is developing. Please check back for updates.
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